ICAEW ACA Certificate Level · Assurance and Risk Fundamentals
Obtaining assurance evidence
15 practice questions, each with the answer and an explanation.
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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.
All 15 questions
- An auditor selects items from the inventory records and then inspects the physical goods in the warehouse. Which assertion is mainly tested by this direction of testing?
- Which of the following pieces of evidence is generally the most reliable?
- In a positive receivables circularisation, how does a customer respond?
- Which of the following is a substantive procedure rather than a test of control?
- A company's sales price increased by 4% during the year, volumes were unchanged, but revenue has risen by 10%. What should the auditor do about the difference?
- Which procedure best tests cut-off for sales?
- What is the main purpose of the auditor attending the entity's year-end inventory count?
- An auditor will use systematic sampling to select 60 invoices from a population of 4,800. What is the sampling interval?
- A population of receivables has a book value of £3,600,000. The auditor uses monetary unit sampling with a sample of 90 items. What is the sampling interval?
- Which of the following is an example of non-sampling risk?
- Which advantage of data analytics software is most relevant to the audit of journal entries?
- An auditor observes an inventory count by live video link because travel is restricted. What is the main limitation of this approach?
- What status do written representations from management have as audit evidence?
- A junior auditor finds an unexplained payment of £85,000 to a company controlled by a director. What should the junior do first?
- A sample covers 5% of the value of a population of receivables. It contains overstatements of £2,400. Tolerable misstatement for the population is £40,000. What is the correct conclusion?
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